Little Christmas cheer for farmers

Santa stands in for rural correspondent Charles Cowap to review another annus horribilis for agriculture. Father Christmas here, offering commiserations on another unsettling year for the agricultural industry. Here at the North Pole we are very concerned about growing global conflict. Regime change in Syria; Israel and its problems; European instability with the French and German pillars of the EU showing severe signs of subsidence; the South Korean wobble, while North Korea becomes more cosy with Russia; Chinese ambitions; a new president in the USA promising trade tariffs; continuing struggle in Ukraine spreading deeper worry all along the Russian frontier countries. Flight patterns are going to be very difficult for the reindeer this year. Against this background, shouldn’t those in the UK be erecting our Anderson shelters and “Digging for Victory” while encouraging farmers to grow all the food they can? Perhaps they should, but, apparently, they are not. You can be sure that we are stockpiling carrots here at the North Pole for the reindeer. Not so glad tidings The long-promised Land Use Framework has yet to arrive. Meanwhile, we see ambitious national targets for accessible green space, tree planting, renewable energy generation, accelerated infrastructure development, housebuilding and nature-based solutions to myriad problems – but no targets for farming beyond a wishy-washy emphasis on food security, which is more focused on getting food from lots of different places than how much we grow in the UK. As far as that is concerned, add to the list of conflicts above the impact of global warming and wildfires on major production areas such as Spain and Morocco, which for many items are at the end of those precious supply lines. At the end of November, Defra announced that it was putting the break on many of its capital grant schemes, adding to the industry’s worries following the October Budget, which promised big changes to agricultural property relief from 2026. In England, the last payments have also now been made under the basic payment scheme, and these have been converted into delinked payments for those entitled to them. Any amounts over £30,000 have been cut altogether, and amounts below this have been reduced by 76%, a “reference amount” of £40,000 therefore reducing to £7,200. The reference amount is based on payments made under the scheme in the years 2020, 2021 and 2022. The inheritance tax changes (reductions in agricultural property and business relief) have galvanised farmers to take to the streets in protest and have added to Jeremy Clarkson’s hero status in the industry. Clarkson stands out as one bright spot in the last year, with the growing appreciation and interest he has garnered in the realities of the farming industry, as distinct from the sugar coating too often seen on Countryfile and other similar programmes. The elves are looking for a suitably large and shiny tractor for Jeremy this year. The tax changes are, however, for many farmers and landowners a manageable change, and the work to avoid or reduce the impact could itself bring great benefit to a lot of farming businesses. This cannot be said of the other changes, such as increased employer national insurance contributions, continuing difficulties in sourcing reliable harvest workers, tightening employment regulations, higher diesel prices and growing threats to land from development. Tenants are particularly vulnerable to development threats, for which most will receive little payment. They are also just as vulnerable to the other pressures, but at least we did see the publication of the new Agricultural Landlord and Tenant Code for England, which now sits aside its more northerly counterpart, the Scottish code. Wales and Northern Ireland await. We are also promised a new tenant farming commissioner for England early in the new year who, despite a grand title, will have to rely on little more than persuasion when problems arise. Christmas markets The larger agents all reported that more land was coming onto the market than for many years. But did land become more affordable with this growth in supply? Not at all. Decent arable land remains well north of £10,000 per acre; grazing land somewhat less. The better land is selling, but some smaller paddocks in more isolated locations seem to be sticking. One thing I have noticed as I fly about in the sleigh is the growing apparent abandonment of small enclosures that once would have supported a few store cattle or sheep. Some of these may have been turned over to environmental purposes, but in some cases they just seem to have been left alone. Even the most enthusiastic advocates of wilding recognise the need for careful management, especially through a transition process. My long memory takes me back to the “great betrayal” perpetrated by the 1921 repeal of the Agriculture Act 1920, which was instrumental in plunging agriculture into a prolonged depression until the outbreak of the Second World War. Perhaps we must look back to that period for lessons in how to cope now. A positive difference from then is the plethora of other opportunities available to farmers and landowners, but again we come back to the plight of the tenant farmers who remain tied to so much of our farmland. Perhaps I should leave Edith Whetham’s 1974 paper for the British Agricultural History Society in a few stockings so people can learn more about this. If I don’t quite make it to your chimney then you can view it here: www.bahs.org.uk/AGHR/ARTICLES/22n1a3.pdf New year resolutions My Christmas message this year is therefore to take a good hard look at the farming business. Is the mix right? Are you producing the right produce for the right market at the right price? Are costs under control? Are there other opportunities – on and off farm? Does the rent need to be looked at? Landlords would also do well to take stock, and by supporting their tenants help themselves – remembering that the inheritance tax threat is one of the more manageable risks that the farming industry is facing. Father Christmas narrated his column to Charles Cowap, a rural practice chartered surveyor and chartered environmentalist